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Hughes Supply, Inc., Orlando, FL, has entered into a purchase agreement to acquire Southwest Power, Inc. and Western States Electric, Inc., each a large privately owned distributor of electrical utility transmission and distribution (T& D) supplies and equipment in the U.S., and, together, one of the largest T& D distributors focused exclusively on the western and southwestern U.S. and recently, western Canada. Southwest Power, Inc. and Western States Electric, Inc. (SWP/WSE ) share a common private ownership group. Purchase price under the purchase agreement is $123.5 million, payable in cash, subject to post-closing balance sheet adjustments. For the 12 months ended Dec. 31, 2003, SWP/WSE reported revenues of approximately $244 million. See article on p. 3 of this section.
The Dichtomatik North America division of International Seal Company, Inc., a wholly-owned subsidiary of Freudenberg-NOK General Partnership, has acquired the assets of American Seal Inc., Houston, TX. The new acquisition will increase Dichtomatik's O-ring product line with more than 12,000 sizes and materials. The company will also use American Seal's Houston facility to enhance regional distribution to the south central market with its full range of products. See article on p. 4 of this section.
W.W. Grainger, Chicago, IL, expects to continue installing SAP across the U.S. branch-based organization by the middle of 2005. To date, the company has completed the design and is currently refining the system to maximize capabilities. One third of the development effort is devoted to such testing and refinement. For 2004, the company continues to forecast $45 million to $55 million in operating expense and $50 to $55 million in capital expenditures related to the SAP program.
CNF Inc., Palo Alto, CA, has entered into a definitive agreement with UPS under which UPS will purchase CNF's Menlo Worldwide Forwarding business for $150 million in cash, plus the assumption of approximately $110 million of debt. The purchase includes Menlo Worldwide Forwarding's air and ocean forwarding operations in more than 175 countries, its North American services and facilities, its operations hub in Dayton, Ohio, Menlo Worldwide Expedite! and Menlo Worldwide Trade Services. See article on p. 4 of this section.
Parker Hannifin Corporation, Cleveland, OH, has acquired Sporlan Valve Company, Washington, MO, a manufacturer of refrigeration and air conditioning components, controls and systems, for an undisclosed amount. The deal is expected to be accretive to earnings in the first full fiscal year. Sporlan operates seven manufacturing facilities and employs 1,000 people. Annual revenues are $150 million. Parker will make Sporlan a new division within Parker's Climate & Industrial Controls Group.
Keystone Consolidated Industries, Inc., Dallas, TX, has filed a Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee. Keystone previously filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Feb. 26, 2004. The operations of Sherman Wire Company will be reorganized as a wholly-owned subsidiary of the new reorganized Keystone.
The Fastenal Company, Winona, MN, reported net sales for the nine-month period ended Sept. 30, 2004 totaled $920.0 million, an increase of 23.8% over net sales of $743.3 million in the first nine months of 2003. Net earnings increased from $64.2 million in the first nine months of 2003 to $97.7 million in the first nine months of 2004, an increase of 52.1%. Net sales for the three-month period ended Sept. 30 totaled $325.7 million, an increase of 26.1% over net sales of $258.3 million in the third quarter of 2003. Net earnings increased from $23.3 million in the third quarter of 2003 to $34.7 million in the third quarter of 2004, an increase of 49.3%. During the first nine months of 2004, Fastenal opened 189 new store sites. The 189 new sites represent an increase of 14.4% since Dec. 31, 2003. There were 5,464 site employees as of Sept. 30, an increase of 14.3% from Dec. 31, 2003 and 16.2% from Sept. 30, 2003.